© Reuters. Morgan Stanley (MS) drops as net interest income trails analyst expectations
By Senad Karaahmetovic
Morgan Stanley (NYSE:MS) shares are trading lower in pre-market Wednesday after the bank reported lower-than-expected net interest income (NII).
The bank delivered a better-than-expected EPS number while revenue for the quarter came in at $14.5 billion, topping the consensus estimate of $14.03B. The upside was driven by the 11% surge in wealth management revenue, offsetting the deceleration in equities sales & trading and advisory units.
Total deposits were reported at $347.52B, lower than the $352.1B expected. Return on equity was 12.4%, below the consensus of 12.7%, while the standardized CET1 ratio came in line at 15.1%.
“We maintained our strong capital levels and remain well positioned to provide long-term value to our shareholders,” said James P. Gorman, Chairman and Chief Executive Officer.
The company also said it added $110B in net new assets this quarter while investment banking activity continues to be constrained.